When is the Management Service fee due for a Deer Solution franchisee?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
| Reporting Non-Compliance | $150 per occurrence | 14 days of invoice | Payable for failure to timely submit Royalty and Activity Reports, and other reports and financial statements as required under Franchise Agreement. |
|---|---|---|---|
| Operations Non-Compliance | $450 to $1,000 per occurrence | 14 days of invoice | Payable for failure to comply with operational standards as required and specified under Franchise Agreement, plus inspection and re- inspection costs incurred by us. |
| Payment Non-Compliance | $150 per occurrence | Payable for failure to timely pay, when due, a fee or payment due to us under the Franchise Agreement, plus interest, costs, and legal fees. | |
| Non-Compliance | Actual fees, costs, and expenses | On demand | Fees, costs, and expenses incurred by us as a result of your breach or non- compliance with the terms of your Franchise Agreement. |
| Legal Fees and Expenses | Costs and expenses | As incurred | This fee includes, but is not limited to, attorneys’ fees for any failure to pay amounts when due or failure to comply in any way with the Franchise Agreement. |
| Audit | Cost of audit | On demand | For costs incurred by us for each financial audit, provided the audit determines underreporting of 2% or greater during any designated audit period. Includes fees incurred by us including audit, legal, travel and reasonable accommodations. |
| Quality Assurance Audit | Actual costs incurred by us | As invoiced | Payable if we engage a third party to perform periodic quality assurance audits, including mystery shopper programs. |
| Management Service | 20% of Gross Sales, plus expenses | As invoiced | Payable if we elect to manage the Franchised Business due to death, disability, a failure by you to have the Franchised Business managed by an authorized Managing Owner or Manager, etc. |
Source: Item 6 — OTHER FEES (FDD pages 14–19)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, the Management Service fee is due "as invoiced." This fee, which amounts to 20% of Gross Sales plus expenses, becomes payable if Deer Solution elects to manage the franchised business under specific circumstances. These circumstances include events such as the death or disability of the franchisee, or a failure by the franchisee to have the business managed by an authorized Managing Owner or Manager.
In practical terms, this means that a Deer Solution franchisee will only incur this fee if Deer Solution steps in to manage the business due to the franchisee's inability to do so. The fee covers Deer Solution's costs and efforts in overseeing the business operations during the period of management. The franchisee will receive an invoice detailing the 20% of Gross Sales and any additional expenses incurred during the management period, and payment is due according to the terms specified on that invoice.
It is important for prospective Deer Solution franchisees to understand the conditions under which this Management Service fee may be applied. While it is not a recurring fee under normal operations, it can represent a significant expense if the franchisee is unable to manage the business and Deer Solution must intervene. Franchisees should clarify with Deer Solution what specific expenses might be included in addition to the 20% of Gross Sales to fully understand the potential financial impact.